1.1 	A bill for an act
1.2 	relating to employment; providing exemptions from
1.3 	employment agency licensing requirements; prohibiting
1.4 	certain fee payments; amending Minnesota Statutes
1.5 	2004, section 184.22, by adding subdivisions.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 184.22, is
1.8 	amended by adding a subdivision to read:
1.9 		Subd. 6.Exemptions. (a) Except as otherwise provided,
1.10 	sections 184.21 to 184.41 do not apply to any person, firm,
1.11 	corporation, partnership, or association engaged in the business
1.12 	of management consulting, management search consulting, or
1.13 	personnel consulting, hereafter "search firm," if:
1.14 	(1) the search firm is retained by, acts on behalf of, and
1.15 	is only compensated by the employer, pursuant to a written or
1.16 	oral agreement specifying the position to by filled;
1.17 	(2) in no instance will any individual candidate who is
1.18 	identified, appraised, or recommended by the search firm for
1.19 	employment become liable in whole or in part to pay a fee of any
1.20 	kind, directly or indirectly, on account of any service
1.21 	performed by the search firm;
1.22 	(3) in no instance does the search firm or its agents
1.23 	solicit, persuade, or induce any individual to terminate
1.24 	employment with an employer with whom the search firm has placed
1.25 	that individual; and 
2.1 	(4) the search firm does not carry on any other activity
2.2 	that comes within the definition of employment agency as defined
2.3 	in section 184.21, subdivision 2.
2.4 	(b) If the commissioner at any time has reason to believe
2.5 	that the search firm has not conducted its business in a manner
2.6 	consistent with the conditions in paragraph (a), clauses (1) to
2.7 	(4), the commissioner may inspect the relevant records of the
2.8 	search firm for the purpose of confirming whether the search
2.9 	firm has maintained its exempt status during the year.  If it is
2.10 	determined, either by written admission by the search firm or by
2.11 	a finding of fact in a court of law or by a hearing officer
2.12 	pursuant to chapter 14, that any of the four conditions in
2.13 	paragraph (a) were not met, the search firm shall be considered
2.14 	an employment agency and be subject to sections 184.21 to
2.15 	184.41.  If an employment agency offers services which are the
2.16 	same or similar to those offered by a search firm, or if a
2.17 	search firm offers services which are the same or similar to
2.18 	those offered by an employment agency, the person or entity
2.19 	offering these combined employment agency and search firm
2.20 	services shall identify itself to the public by displaying the
2.21 	name in which it is registered with the commissioner as a
2.22 	licensed employment agency; provided, that no registered search
2.23 	firm may offer licensed employment agency services at the same
2.24 	location.

2.25 	Sec. 2. Minnesota Statutes 2004, section 184.22, is
2.26 	amended by adding a subdivision to read:
2.27 		Subd. 7.Fee payment prohibited. No employer may require
2.28 	any job candidate placed with the employer by a search firm to
2.29 	pay, directly or indirectly, all or part of the search firm's
2.30 	fee.